WATSCO INC (WSO-B)
Wholesale-Hardware & Plumbing & Heating Equipment & Supplies
Latest Price
$312.46
TTM P/E
26.77
Normalized P/E
23.61
Div Yield
3.94%
Book Value
78.70
P/B Ratio
3.97
Valuation metrics
adjust assumptions →EPS: $12.25
Book value / share: $73.39
Formula: √(22.5 × EPS × BVPS)
Graham Number
$142.22
54% downside
Norm. op. income: $720M (median of 7yr)
Tax rate: 20%
Discount rate: 10%
Growth assumption: zero (EPV is a no-growth value)
Earnings Power Value
$162.39
48% downside
Base FCF: $535M (median of recent 5yr)
Growth: 12%/yr (median YOY, capped at 25%)
Discount rate: 10%
Terminal growth: 3%
Projection horizon: 10 years
DCF Fair Value
$402.30
+29% upside
EPS: $12.25
Target P/E: 24×
Formula: EPS × P/E
P/E Fair Value
$294.00
6% downside